Sales Tax and other taxes are an important part of any business and you may have to charge taxes for some goods and services. QuickBooks allows you to apply and process sales tax easily to the required tax agency. There can be some items as well that you want to on a single invoice and QuickBooks does that easily for you. With QuickBooks you can easily show multiple sales tax items on an invoice. For that you need to perform some appropriate guidelines provided by Intuit. If you are not aware of this process, you need to read this article as we will be providing complete steps to include multiple sales tax items on a single invoice.

This article is a part of series on Sales Tax. In this series, we have covered all the usual workflows in QuickBooks Desktop.

It also helps you complete other sales tax-related tasks.

If you face any issue regarding sales tax in QuickBooks Desktop, you can refer to Resolve common sales tax issues.

For some places like Puerto Rico, you need to show multiple sales tax rates on printed sales forms. For example, Puerto Rico has 5.5% of sales and use tax rate. In case the sale was done for a municipality like San Juan, you may be required to show additional 1.5% tax on your sales form and it is mandatory to show both tax rates on the printed sales form.

Most of the times, you need to add just a single tax rate to entire sale, and an additional tax rate to the sale up to small amount. For example, complete sale is taxable at 4% but initial $5000 will have an 1% additional tax applied. Specially, if both taxable and nontaxable items are sold, you will be able to see these minor complications in sales tax.

In such situations, you should be using a subtotal item and multiple items on your invoice.

Display multiple tax rates

  • Set up sales tax items.
  • Go to the Lists menu and choose Item List.
    • Right-click anywhere in the List window and click on New from drop-down options.
    • For item type, click on Sales Tax.
    • Provide required information like Sales Tax Name, Description, Tax Rate (%), and Tax Agency Information in respective fields and click on OK.
    • Perform same steps for each sales tax items that is required.
  • Create a subtotal item.
    • From the main menu, select Lists and then Item List.
    • Right-click anywhere in the List window and click on New from drop-down options.
    • For item type, click on Subtotal.
    • Provide required information like Item Name/Number and Description in respective fields.
    • Click on OK.
  • Set up invoice through multiple sales tax items. Important: Before you move on to the steps, you need to verify default tax is 0.0% in the invoice to allow invoice to calculate sales tax rates per item
    • Go to the Customers menu and choose Create Invoices.
    • Provide all taxable items. Make sure there are non-taxable items are added. You can add them later.
    • Include taxable code at the right side of each related item.
    • You can generate a subtotal by entering subtotal item after you enter entire taxable items. To calculate a tax according to a threshold sales amount, you need to include subtotal item below all taxable items. Move to further steps to add existing taxable items along with non-taxable items.
    • To calculate tax on subtotal amount, you need to provide required sales tax item under subtotal item. There will be no affect on sales or commission reports if you use a subtotal amount.
    • Enter all non-taxable items that won’t be included to the sales tax. Make sure you add all non-taxable code to the right of each item.
    • Click on Save & Close.

Still In Confusion?

We hope that performing above steps helped you to show multiple sales tax items on a single invoice. As we have already mentioned possible scenarios when you may have to show more than one sales tax items on one invoice. However, if you are still in confusion regarding the process or you need any kind of help with any process regarding sales tax in QuickBooks Desktop, you can connect with our QuickBooks Desktop experts by dialing toll-free QuickBooks Support Phone Number +1850-308-2863. You will be directly connected to one of our ProAdvisors who will start assisting you with the issue and provide required solutions.

Show Multiple Sales Tax Items On An Invoice

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